SOUTH WALES film maker CF1, which is working on a new production of Heidi, has received a second round of funding from Finance Wales.

The Cardiff Bafta Cymru award-winning film production company will use the mezzanine (part debt and equity) investment to continue and enhance its co-production service and further develop its in-house film productions in Wales.

CF1 received a Bafta for its 2002 production of Plots with a View, a comedy set in the Rhondda Valley staring Brenda Blethyn, Alfred Molina, Christopher Walken and comedian Lee Evans. Among its previous production successes, CF1 can also boast the award-winning Testimony of Taliesin Jones, starring Jonathan Pryce and Griff Rhys-Jones and the thriller Alone, starring John Shrapnel, Laurel Holloman and Miriam Margolyes.

Receiving their second instal- ment of funding from Finance Wales, just one year after its original investment, signifies the growing success of CF1 in attracting international productions to Wales.

Since its incorporation in 1998 CF1 has completed six feature films and eight short film projects, invested time in training program- mes for young and new talent and provided opportunities for new writers, directors and film crew.

The company is also in advanced negotiations for two further film productions in 2005.

Finance Wales mezzanine investment executive Martin Phelps said, "Following our original investment, the company has worked extremely hard to maintain and build its market position.

"This continued hard work and commitment over the last 12 months has led them to securing the contract for Heidi together with the potential for further contracts in the pipeline.

"This clearly demonstrates the value of the CF1 investment to Finance Wales and for Wales as a whole. Our faith in the company has been well founded."

Producer David Ball said, "Finance Wales have made a real difference to the company. We are now moving forward with film production, and our latest production Heidi signifies our continued and growing success.

"With the use of Stradey Castle, the new film really demonstrates our second phase of the business - providing a production manage- ment service, searching for suitable filming locations and identifying Welsh talent.

"We are keen to use the varied Welsh landscape as a back-drop to our films.

"Wales is proving to be attractive to film-makers, not only because of the variety and quality of landscapes and buildings available, but also because costs are generally lower than in some other parts of the world."

Industry figures suggest that the benefit to the local economy can be up to nine times the value of the total money spent in the locality by production companies.

Mr Phelps added, "Quite apart from the business aspect of these activities for CF1, they provide significant economic benefits for the local area in which a film is made.

"With average film shoots lasting about two months, the amount of cash being re-circulated in the local economy from this type of activity within a short space of time is significant."